A MUST READ (Part 6): Why the so-called "consolidated main agreement" should not be extended to non-parties - 90% of employers in the Steel Industry.

Dear Steel Industry employer
 
What follows is another letter by a Steel Industry employer to the Minister of Employment and Labour.
 
Regards

Letter by employer:

South Africa’s unemployment is at an all-time high.
 
With an economy where the metal industries labour hourly rate is already the most expensive in the country, the proposed agreement extension is not sustainable for the small to medium sized businesses.
 
In our case, a manufacture of XXXXXXX and metal accessories for network infrastructure, we already compete with imported products that are sold for less than it costs to manufacture locally.  This is as a result of the skewed duty protection imposed on imported metal versus, no duty imposed on imported XXXXXXX and accessories.
 
We already find it challenging to cover overheads and pay our staff on time, due to a diminishing customer base and turnover, as a result of the above.
 
If the extension is enforced, we will have no option but to reduce our work force by 50% and pass on the labour increase to the customers.  This will ultimately result in even lesser turnover and force us to close the company altogether.
 
With the unemployment being at an all-time high, it stands to reason that the MEIBC member base is also becoming smaller and it is obvious why the MEIBC is pushing for the extension, ……. so they can recover some of the lost income. 
 
If the agreement is extended, it will be at the detriment of further unemployment.

For more information:
NEASA Media Department
media@neasa.co.za